It doesn't matter why this person's experience sucked with Android, it still did. An iPhone 'just worked' for this same person.
I know exactly what I'm getting when I get an iPhone no matter where in the world I get it. There's no carrier specific crap. All the models have well known limitations and features. I can trust, for the most part, any apps I get from the app store.
It's great that you can go onto eBay and get a used phone (or possibly new), but how scalable is that? Would you trust your mother or grand mother to do the same? How much effort did it take between bidding, paying and activating compared to the effort that most people are willing to put into getting a new phone?
I don't think Android is going to be a failure -- the phones will always be around. They have basically taken the place of Nokia's feature phones.
At the end of the day, Google should have maintained more control to guarantee a better user experience. They had an opportunity to follow in Apple's footsteps and put another nail in the carrier's control coffin.